Federal lifeline for Adelaide recycler Aspitech

A new contract has been found for Adelaide e-waste recycling company Aspitech, saving the jobs of 140 workers.

Aspitech recycles televisions and computer parts but had been struggling to find enough work to remain operating.

Around half of the workforce is made up of people with a disability.

Mr Hunt is in Adelaide to meet the plant's management and discuss the future of the operation that had been under severe financial stress after losing recent contracts.

The Minister said the Government would now review the National Television Computer Recycling Scheme but in the meantime a new contract had been found with a company called Reserve e-waste.

"We've solved the problem for Aspitech and tomorrow I've summoned all of the key business partners in the country to a meeting in Melbourne to fix the structural problem in the system," he said.

Mr Hunt blamed the State Government for the problems faced by Aspitech describing the scheme created by the former Labor Government as "fundamentally flawed".

"It relies on all states continuing to support recycling and disability groups," he said.

"This is not happening. They have failed to deliver their end of the bargain."

Mr Hunt said South Australia had misused the system.

"Dumping these huge costs onto disability services is one of the most irresponsible and immoral actions I've seen by a state government and now they're trying to blame others," he said.

State Government puts blame at Canberra's feet

However SA Environment Minister Ian Hunter said any suggestion the State Government had not done its share was "complete nonsense".

"We first raised Aspitech's dire situation with Minister Hunt in January this year," Mr Hunter said.

"Since then we've endured months of inaction followed by political bluster and misinformation."

Mr Hunter said Aspitech had lost contracts because of limits on the amount of waste allowed to be recycled as well as a decline in export deals.

"At the moment, 35 per cent is mandated by the Federal Government and the producers of TVs and computers are saying that's all they are going to fund if that's all the Federal Government is asking for," Mr Hunter said.

"Due to the restrictive limits the amount of waste that is allowed to be recycled, businesses like Aspitech have lost contracts."

Mr Hunter said there was very little the State Government could do.

"The export permits are all approved at a federal level," he said.

"So whilst we've made significant investment in this state, we've banned electronic waste going into landfill so it must be recycled, there are loopholes that must be closed down by the Federal Government."